Tredegar Corporation (TG): Don’t Ignore This Up ‘n Comer in Plastics

In the auto sector, while a company like Johnson Controls, Inc. (NYSE:JCI) is looking to shed its automotive-electronics business, auto-parts maker Delphi Automotive PLC (NYSE:DLPH) is looking to grow its business. Delphi is a suitor for JC’s division, which generates about $1 billion in sales, and is among the companies to have bid, according to reports on Bloomberg. It would be a strategic fit for Delphi, which expects to generate between $16.2 billion and $16.6 billion in revenue this year. The sales could offset some of the weakness stemming from its European market exposure, but Europe is weighing on Johnson Control’s business, too.

Delphi is largely considered a harbinger of auto-market activity because it receives its orders well in advance, as a WSJ article points out. The fact that Delphi recently lifted its full-year 2013 EPS estimates is a positive sign.

Conclusion

I’m on the fence about The Procter & Gamble Company (NYSE:PG) because the company is in such heavy transition. Delphi is a company to watch. As for Tredegar Corporation (NYSE:TG), the idea of getting in on a company at the ground floor is always exciting. This company might not be at the ground-floor level anymore, but it certainly has hit its stride and hasn’t reached the penthouse, or its full potential, as of yet. I like this company as an investment.

Gerelyn Terzo has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble.

The article Don’t Ignore This Up ‘n Comer in Plastics originally appeared on Fool.com.

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